Issues have been aroused on the rights of donees as the Court of Appeal upheld a judgement of a District Judge wherein the court had held that a donor can revoke an irrevocable deed of gift by executing a deed of revocation without filing action and obtaining a decision of court. It also impacts on lending institutions who are now placed in a disadvantaged position as they can lose the security on which the loan was granted, on a unilateral revocation by the donor.

Accordingly, the proposal made by Hon. Dr.Wijayadasa Rajapaksa, Minister of Justice , was approved by the Cabinet of Ministers.